CHICAGO—The corporate communications practice at Chicago-based financial public relations firm Ashton Partners is representing a group of plaintiffs—including eight distributors—in their lawsuit against Quixtar, the name now used in the U.S. by direct selling giant Amway. The account is being led by corporate practice leader Michael Geczi.
On August 9 of this year, the group filed a lawsuit seeking to enjoin Quixtar from enforcing its distributor contracts, including the non-competition and non-solicitation provisions. The plaintiffs allege that the company knowingly operates as a pyramid scheme, and prevents its distributors from leaving the organization. The lawsuit is not seeking damages, but hopes to secure a judicial declaration that these provisions are unenforceable so that distributors who choose to do so can extricate themselves.
Ashton is operating a website (www.freetheibo.com) to provide information to constituencies interested in the case.